Woodside narrows annual output forecast as third-quarter revenue rises 27%

what happened

Australia's largest independent oil and gas producer, Woodside Energy, said on Wednesday it has tightened its annual output guidance. Production is now seen between 174 and 181 million barrels of oil equivalent, against the previous range of 174 to 185. Quarterly revenue rose 27% on the back of stronger oil and gas prices.

The cut at the top end reflects lower expected volumes from the Beaumont New Ammonia plant in Texas, a later start window for first LNG from the Scarborough project, and reduced output at the Okha floating vessel. Beaumont was shut for roughly 30 days after a process safety incident and faces feedstock limits.

Revenue reached $4.28 billion in the three months to September 30, compared with $3.36 billion a year earlier and above the Visible Alpha consensus of $4.11 billion. Production of 46.2 mmboe fell 9% year on year but climbed 12% from the prior quarter, when Pluto LNG returned after maintenance completed in the second quarter.

why it matters

Investors will focus on two points: revenue above consensus shows that higher energy prices are feeding through to producer income, while the narrower output range points to operational risks at key projects such as Beaumont and Scarborough. For the LNG market, the change is mainly about volume and timing rather than price.

market impact

Gas and LNG: narrower Woodside forecast and a later Scarborough start limit near-term supply growth from the project

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